Shakib gold trading without permission, BSEC seeks clarification
Versatile cricketer Shakib Al Hasan started a gold business besides playing cricket.
He started gold business through two companies named “Reliable Commodity Exchange Company” and “Burak Commodities Exchange Co.”.
Meanwhile, an allegation has been raised against Shakib that he initiated gold trading without prior clearance from the Bangladesh Securities and Exchange Commission (BSEC). Therefore, the BSEC has sought clarification from two Shakib companies for launching gold business in defiance of the law.
Recently, the BSEC sent letters to the managing directors of two companies asking for clarification on why they started gold mining activities without authorization.
In addition, the Governor of Bangladesh Bank, the Principal Secretary of the Financial Institutions Division of the Ministry of Finance and the Secretary of the Ministry of Commerce have been notified of the violation.
Citing section 8(4) of the Securities and Exchanges Ordinance 1969, the BSEC said that a person or company not a member of the stock exchange would not be permitted to enter into futures contracts on commodities raw materials and start activities.
“No one other than a member may act as a broker or [jobber or dealer] for any unlisted security,” the letter read.
BSEC recalled the “commodity futures contract” criterion, saying that it refers to agricultural, livestock, fishing, forestry, mining or energy goods, and products made or processed from these goods.
Shakib companies do not have the ability to deal in gold as the well-defined commodity futures contract as a security under section 2(1)(iii) of the Securities and Exchanges Ordinance of 1969 drew a border.
In the letter, the two Shakib companies were asked to send a response within seven working days of the letter’s issuance.
“At this stage, you are asked to explain your position regarding the offer of business through a commodity futures contract without Commission approval or without being a member of this exchange (which has no not yet started or obtained approval from the Commission) within 7 (seven) working days of issuance of this letter,” reads the BSEC letter signed by Md Mosavvir Al Ashick, Deputy Director (SRMIC).
On April 22 this year, Shakib inaugurated the gold showroom at Banani in the capital Dhaka. He entered into an agreement with Curious Life Style to launch the gold business.
Burak Commodities Exchange Co reportedly got approval as a reseller from Bangladesh Bank on November 28, 2019. The company has already started importing gold bars and ornaments trading them through its offices in Dhaka, Rangpur and Cumilla .
Gold Business is Shakib’s newest addition after its restaurant, hotel, stock market, cosmetics, shrimp, travel agency, event management and e-commerce businesses. In addition, he also tried to invest in the banking sector, although Bangladesh Bank refused to give approval for this purpose.